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Noncompete Clauses: Signing Away the Right to Get a New Job

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Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#82
post #9

Worth remembering, especially for those just entering the software field: by the time a potential employer gives you an employment agreement to sign, they've already decided they want you. At that point, it's on them to give you a palatable offer. They may include a noncompete clause for one of two reasons: 1) to prevent you from working somewhere else at the same time, which can create all sorts of conflicts of inte…

Redlining the non-compete section is not a minor modification. Some companies are very serious about their non-competes. They will pay you millions of dollars to respect them (and sue you for millions of dollars if you don't). If you try and cross out your non compete agreement they will just withdraw your job offer.

Non competes aren't intrinsically shady or evil. Some companies have business models that depend very heavily on secret IP. It's just another adverse factor you have to add into the mix when evaluating a job, along with compensation, work-life balance, advancement opportunities, etc. Many non-competes are very well compensated, and limited in scope to a particular niche industry, so you could still go off and work anywhere else in tech industry where your IP cannot be used against your old employer. Signing one isn't the worst thing in the world.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#83
post #9

Worth remembering, especially for those just entering the software field: by the time a potential employer gives you an employment agreement to sign, they've already decided they want you. At that point, it's on them to give you a palatable offer. They may include a noncompete clause for one of two reasons: 1) to prevent you from working somewhere else at the same time, which can create all sorts of conflicts of inte…

Redlining the non-compete section is not a minor modification. Some companies are very serious about their non-competes. They will pay you millions of dollars to respect them (and sue you for millions of dollars if you don't). If you try and cross out your non compete agreement they will just withdraw your job offer. Non competes aren't intrinsically shady or evil. Some companies have business models that depend very…

This advice is not meant for people who are being paid millions of dollars to respect a non-compete they fully understand and consent to.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#84
post #9

Worth remembering, especially for those just entering the software field: by the time a potential employer gives you an employment agreement to sign, they've already decided they want you. At that point, it's on them to give you a palatable offer. They may include a noncompete clause for one of two reasons: 1) to prevent you from working somewhere else at the same time, which can create all sorts of conflicts of inte…

I hear this advice about contracts of adhesion all the time, "just red line out the parts you don't like, just like in that scene in 50 Shades of Gray."

Who in the software industry still gets offers like that? Everyone I know gets a DocuSign PDF they sign digitally. There's no opportunity to alter the document.

There is basically no non-confrontational way to do this. If a software developer has a competing offer, sure, leverage it. Otherwise, I think the only realistic remedy is a state-wide or nation-wide legal protection.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#85

I've been sued twice over non compete language. The good news is they are reasonably hard to enforce because most judges will ultimately agree that people have a right to change employers. The bad news is it can cost a lot of money to get to the point where the judge says that.

> The good news is they are reasonably hard to enforce because most judges will ultimately agree that people have a right to change employers. The bad news is it can cost a lot of money to get to the point where the judge says that.

Yes, and that's the rub. I've had several recruiters respond with, "oh don't worry, that's not enforceable" when I objected to an onerous NCC in a contract they presented me with. My response was "perhaps, but you could use it to drag me through the courts and make my life hell, so remove it altogether, or we're done here."

In each case, it was after I had verbally accepted a verbal offer. And in each case, they removed the NCC.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#86

In the early 1990s, I'd co-founded an object database company, with a standard "east-coast-style" non-compete, which among other things, granted us injunctive releif. Our top developer left to work for our main competitor. We sued, and the courts ruled basically that there is no slavery in the US and our developer had every right to earn a living doing what he knew how to do. Maybe laws have changed, and maybe it var…

I don't know that this is good advice. Attitudes toward noncompetes vary from state to state and probably even from judge to judge; I don't think it's a good idea to put one's career at risk from what amounts to a coin toss, even if the odds are 50/50 or even somewhat better.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#87
post #77

Earlier quoted context omitted.

That's strange... I spent 6 years living and working in America and I never met anyone who loved work, with the exception of some founders, perhaps.

I get that people don't love work in America in the way you're saying. I think the idea is that in America you're less likely to get a positive reaction to things such as you're the man and the primary breadwinner: - You opt to cut your hours from 45-30 and live on less - You take a few months vacation - You take a year paternity leave I know from experience that those can seem irresponsible to many.

It's irresponsible because social welfare in the U.S. is poor compared to what is available in Germany, France, and Scandinavia.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#88
post #9

Worth remembering, especially for those just entering the software field: by the time a potential employer gives you an employment agreement to sign, they've already decided they want you. At that point, it's on them to give you a palatable offer. They may include a noncompete clause for one of two reasons: 1) to prevent you from working somewhere else at the same time, which can create all sorts of conflicts of inte…

I hear this advice about contracts of adhesion all the time, "just red line out the parts you don't like, just like in that scene in 50 Shades of Gray." Who in the software industry still gets offers like that? Everyone I know gets a DocuSign PDF they sign digitally. There's no opportunity to alter the document. There is basically no non-confrontational way to do this. If a software developer has a competing offer, s…

Sure, they can turn off editing in DocuSign, but that doesn't change what this is: a negotiation. Download it as a PDF and then copy/paste it into a Google Doc. Edit the document as you feel is necessary, print both the redlined copy (so you can explain your proposed changes) and the clean one.

If they're cool with it, sign the clean employment agreement together on the spot. Make copies and you're done.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#89
post #4

Earlier quoted context omitted.

There are plenty of Republicans who are against this type of mercantilist behavior.

there are republicans who arent? they are suppose to defend free market

Voluntarily agreeing not to compete with a company for some period of time is completely fine as a contract in a free market system. Not interfering in those agreements not only doesn't contradict a commitment to free markets but is actually a logical extension of it: individuals engaging in the system ought to be free to conduct whatever transactions they see fit. Free markets and well-functioning markets aren't coextensive, though, and that's the rub with non-competes.

Re: Noncompete Clauses: Signing Away the Right to Get a New Job

#90
post #9

Worth remembering, especially for those just entering the software field: by the time a potential employer gives you an employment agreement to sign, they've already decided they want you. At that point, it's on them to give you a palatable offer. They may include a noncompete clause for one of two reasons: 1) to prevent you from working somewhere else at the same time, which can create all sorts of conflicts of inte…

Just be ready for the company to pull the offer. Lots of times it's not even on the principle (we don't actually agree to the changes) but ego ... as in "who does this guy think he is pushing back on this contract that 100s of our employees have signed"

If you're not ready for the company to walk away, be careful with this approach.

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